Godrej Construction focuses more on infra as the real estate slowdown bites more
Mumbai, Sep 22 () The persistent liquidity crisis and the slowdown in demand in its real estate business since the last three or four years have resulted in the construction materials business unit of Godrej Construction changing its focus on infrastructure Urban, a high level company. official has said.
The commercial building materials arm is a strategic commercial unit of Godrej Boyce Mfg Co diversified and is also seeing a 20 percent increase in revenue this fiscal year to Rs 300 Rs of Rs 250 Rs Rs last year Prosecutor Anup Mathew, senior vice president and chief business officer at Godrej Construction, said.
One of the important things we have detected while the real estate sector has been under stress is that the government is focusing much more on urban infrastructure now. With the increase in budgetary expenses, we see a good demand for the construction materials business, he said. .
He said the company has already packed an order from the Metro 3 corridor and three packages from the Metro 4 corridor to supply ready-mix concrete/similar products.
Godrej Construction offers a wide range of building materials that include specially designed ready-mix concrete products, AAC blocks, recycled concrete blocks and pavers for different types of applications.
It has also reduced its offer to real estate developers due to uncertainty about payments, since most players are dealing with the liquidity crisis.
Previously we were supplying recycled concrete and RMC products only to the real estate sector. But with the sector going through a difficult phase in recent years, we changed our strategy to focus on urban infrastructure, explains Mathew.
If they plan to increase manufacturing capacity, he says, we would prefer to be lightweight assets. Our model is to have strategic alliances with suppliers to expand as necessary. We can install our new plants in the project sites.
In addition, he says the company wants to focus on some markets such as Mumbai, Bengaluru and Pune, where it has its manufacturing facilities.
However, Mathew points out that when the real estate sector revives, its revenues from the construction materials business can also increase and bring total revenues to Rs 500 million in the coming years. Godrej Construction is also dedicated to the development of modern spaces and the leasing of commercial real estate spaces. PSK BEN MKJ